Smart Connected Devices in Emerging Markets to Surpass 1 Billion Unit
Shipments by 2014 with More Than 60% Going to BRIC Countries, According
to IDC

June 10, 2013 08:30 AM Eastern Daylight Time

FRAMINGHAM, Mass.--(BUSINESS WIRE)--According to the International Data Corporation (IDC)
Worldwide
Quarterly Smart Connected Device Tracker, global shipments of smart
connected devices (PCs, tablets, and smartphones) are expected to
surpass 1.7 billion units by 2014 with roughly 1 billion units delivered
to emerging markets. Within the emerging markets, the BRIC countries --
China, India, Brazil, and Russia -- are expected to generate shipments
of 662 million units with a shipment value of more than $206 billion.
More than 650 million units are forecast to be shipped to developed
markets, with the United States, UK, and Japan capturing more than 400
million units with a shipment value of $204 billion.

With the BRIC countries expected to surpass the total shipments to
developed markets by 2014, it is clear that demand for smart connected
devices is quickly shifting from developed to emerging markets. The
emerging markets are expected to grow at a compound annual growth rate
(CAGR) of 17% over the 2012-2017 forecast period, compared to the 7%
CAGR expected in developed markets.

In terms of product categories, the smart connected device market will
be largely driven by the growing demand for smartphones and tablets in
both emerging and developed markets. Of the 1.7 billion units forecast
to be shipped in 2014, more than 1.4 billion units are expected to be
smartphones and tablets, representing more than $500 billion in value.
PCs, on the other hand, will be a comparatively small market with just
over 300 million units shipped and a shipment value of less than $200
billion.

"It is evident that smartphones and tablets have successfully
established a strong presence as the 'second screen', owing to the
transformation in usage patterns, device affordability, and, most of
all, the comfort of a mobile and digital lifestyle," said Megha
Saini, Research Analyst with IDC's Worldwide
Smart Connected Device Tracker. "Vendors and OEMs need to be aware
of the different usage patterns so as to drive product innovation that
suits the tangible needs of their digital consumers."

With the rise in global smartphone and tablet shipments, the average
selling price (ASP) of these mobile computing devices is steadily
decreasing. Tablet ASPs plummeted -19% year over year in 2012 to $426,
down from $525 in 2011. Smartphone ASPs fell -8.2% year over year to
$407 in 2012, down from $443 in 2011. This pattern of decreasing price
points is most prominent in emerging countries where IDC expects
sub-$300 smartphones and sub-$350 tablets to drive huge shipments in
2014 and beyond. In developed markets, smartphones and tablets will
continue to generate higher ASPs of $490 and $370, respectively, in 2014.

"Smartphone and tablet prices are now less prohibitive to first-time
buyers in emerging markets," said Bob
O'Donnell, Program Vice President, Clients and Displays. "Although
the double-digit growth of smartphones and tablets in emerging countries
is a mouthwatering prospect, the low selling price also means that
vendors will face huge struggles to meet the demands profitably. Given
the competitive price points for cheaper smartphones and tablets, this
price war is a race to the bottom and it's not at all clear that this
low-end market offers sustainable profits to smartphone and tablet
vendors."

Another factor fueling the growth of smart connected devices in emerging
markets is the upsurge in the use of different mobile applications, such
as mobile messaging, gaming, social networking, and social commerce,
including mobile check-in services. Growing interest from governments,
especially in education projects across countries like India, Thailand,
Turkey, and the UAE, has also boosted the prospects of low-cost tablets
for students in these regions. Indeed, the proliferation of cheaper, yet
more capable devices, along with the deployment of 3G/4G services and
changing usage patterns have been pivotal in driving the overall growth
of smart connected devices in emerging markets.

In addition to the table above, an interactive graphic showing smart
connected device market share by device category for 2012, 2013, and
2017 is available here.
The chart is intended for public use in online news articles and social
media. Instructions on how to embed this graphic can be found by viewing this
press release on IDC.com.

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About IDC

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